Swedish furniture giant IKEA eyes Vietnam entry

IKEA plans to invest in a retail and warehouse system in Hanoi. Photo by Reuters

Swedish furniture retail giant IKEA plans to invest an estimated $450 million to set up a retail system and warehouses in Hanoi.

They will serve the entire Southeast Asian market. The corporation is in negotiations to set up shop in Vietnam.

IKEA has eyed entry into Vietnam since 2015, when its executives revealed their intention to do so within five years.

The company, established in 1943, designs and sells ready-to-assemble furniture, kitchen appliances and home accessories.

It is the largest furniture retailer in the world with more than 400 stores in 49 countries. In Southeast Asia, it has stores in Singapore, Malaysia and Thailand.

Foreign home interior brands and designers are present in force and dominating the increasingly affluent Vietnamese market.

According to the Vietnam Chamber of Commerce and Industry (VCCI), some 80 percent of luxury woodwork and interior decoration items is imported from Europe, with local players making up the small remaining portion. The market is valued at $2.5 billion.